Have Nakoda Group of Industries Insiders Been Selling Stock?

Anyone interested in Nakoda Group of Industries Limited (NSE:NGIL) should probably be aware that the Chairman & MD, Pravin Choudhary, recently divested ₹12m worth of shares in the company, at an average price of ₹48.07 each. However, the silver lining is that the sale only reduced their total holding by 4.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Nakoda Group of Industries

The Last 12 Months Of Insider Transactions At Nakoda Group of Industries

Notably, that recent sale by Pravin Choudhary is the biggest insider sale of Nakoda Group of Industries shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹47.18. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Pravin Choudhary divested 281.41k shares over the last 12 months at an average price of ₹49.52. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Nakoda Group of Industries

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Nakoda Group of Industries insiders own about ₹398m worth of shares (which is 66% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Nakoda Group of Industries Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nakoda Group of Industries. Our analysis shows 7 warning signs for Nakoda Group of Industries (5 can't be ignored!) and we strongly recommend you look at these before investing.

Of course Nakoda Group of Industries may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com